Brothers Harry and Herman Hausyerday began operations of their machine shop (H &

Question

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):

Income tax for the year was $8. It will be paid in 2016.

I need help with preparing an income statement, retained earnings statement, the balance sheet, and the post-closing trial balance. I also need help checking my answers for my adjusted trial balance with the adjusted entries included.

thank you

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):

Explanation / Answer

Entries Adjusted TB   Account Titles Debit Credit Debit Credit Debit Credit   Cash 3 42 45   Accounts Receivable 5 16 21   Supplies 12 -2 10   Land 0 9 9   Equipment 60 60   Accumulated Depreciation 6 6 12   Software 15 10 25   Accumulated Amortization 5 5 10   Accounts Payable 5 5 10   Notes Payable (short-term) 0 12 12   Salaries and Wages Payable 0 12 12   Interest Payable 0 1 1   Income Tax Payable 8 8   Common Stock 71 3 74   Retained Earnings 8 8   Service Revenue 0 160 160   Salaries and Wages Expense 0 97 97   Depreciation Expense 0 6 6   Amortization Expense 0 5 5   Income Tax Expense 8 8   Interest Expense 0 1 1   Supplies Expense 0 20 20      Totals 103 103 204 204 307 307 Income statement Service revenue 160 Expenses:   Salaries and Wages Expense 97   Depreciation Expense 6   Amortization Expense 5   Interest Expense 1   Supplies Expense 20 Income tax expenses 8 Total expenses 137 net profit 23 Statement of retained earnings Opening balance 8 Add Net profit 23 Closing balance 31 Balance sheet Equity and liabilities Assets Current liabilities Current assets   Accounts Payable 10   Cash 45   Notes Payable (short-term) 12   Accounts Receivable 21   Salaries and Wages Payable 12   Supplies 10   Interest Payable 1 76   Income Tax Payable 8 43 Non-current assets   Land 9 Equity   Equipment, Net 48   Common Stock 74   Software, Net 15   Retained Earnings 31 72 105 Total 148 Total 148

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